Gold rises on peace deal optimism, Fed in focus

June 17, 2026 (MLN): Gold prices extended their winning streak, buoyed by optimism surrounding a U.S.-Iran peace agreement that tempered expectations of further U.S. interest rate hikes, as markets braced for the Federal Reserve's policy decision.

Currently, spot gold is up 0.08% to $4,322.37 an ounce as of [11:24 am] PST, according to data reported by Mettis Global.

Emerging details of a U.S.-Iran interim agreement  which U.S. President Donald Trump said would bar Tehran from developing a nuclear weapon and allow Iran to resume oil exports upon signing  lifted sentiment across precious metals markets, CNBC reported.

Oil prices, meanwhile, lingered near a three-month trough on prospects of Iranian crude re-entering global supply, alleviating inflationary pressures and further cooling rate-hike bets.

Market pricing reflected the shift in expectations, with traders now assigning a 59% probability to a U.S. rate increase in December, down sharply from roughly 70% prior to the peace deal announcement, according to CME FedWatch data.

Gold, which offers no yield, typically loses ground in high-rate environments.

Broader precious metals followed gold higher. Spot silver gained 0.3% to $70.38 per ounce, platinum advanced 0.5% to $1,812.80, and palladium rose 0.3% to $1,355.65.

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